Bond Market Update

Data Recon

• Existing home sales increased 1.2% month-over-month in October to a seasonally adjusted annual rate of 4.10 million (Briefing.com consensus 4.08 million) from a downwardly revised 4.05 million (from 4.06 million) in September. Sales were up 1.7% on a year-over-year basis.
  • The key takeaway from the report is that home sales in October were aided by lower mortgage rates, yet limited inventory in some regions, combined with high prices in others, got in the way of stronger selling activity.
• Yield Check:
  • 2-yr: -3 bps to 3.57%
  • 3-yr: -3 bps to 3.56%
  • 5-yr: -3 bps to 3.68%
  • 10-yr: -2 bps to 4.11%
  • 30-yr: -1 bp to 4.74%